SAA / Image via Adobe Stock
According to the Department of Public Enterprises, all conditions for the implementation of the SAA Business Rescue Plan were met last week.
SAA / Image via Adobe Stock
The Department of Public Enterprises (DPE) said all the conditions for the implementation of South African Airways (SAA) Business Rescue Plan were met last week. All that’s left is to bring the process closer to finalisation, which means the DPE overseeing four critical phases.Â
In order to complete the Business Rescue Plan process, the DPE is overseeing four phases.
These phases are;
The voluntary retrenchments provided in the Business Rescue Plan will see the retrenchment of all employees with only 1 000 employees remaining to start the new airline on different terms and conditions to those currently existing.
About 1 000 employees will be placed on a Social Plan — a temporary training lay-off scheme so that they can be absorbed into the new airline as and when new positions become available.
As the shareholder on behalf of government, the DPE will soon appoint a smaller, effective, reinforced, and empowered Board of Directors who will then appoint the airline’s new executive management including, Chief Risk Offcer, Chief Information Officer and Chief Operating Officer.
The DPE has identified a transaction advisor whose mandate is to assist the department in transaction planning, feasibility analysis, procurement and implementation of transactions and raising funds and investments for the new airline. The advisors are also expected to assess unsolicited expressions of interests from private sector funders, private equity investors and partners for a future restructured SAA.
The DPE is engaging constructively towards the national interest objective of a new airline which will be run in a professional and sustainable manner to support key economic sectors, including tourism and solidify South Africa as an African gateway to international markets.
While maintaining a certain level of presence of ownership in the new carrier, the government, through DPE, would like to see the following characteristics of the new airline as envisaged in the new Business Rescue Plan: